Title
Approval - Impact Study Consulting Services
History
During the FY2017 budget process, the Board discussed the various revenue sources available to the Village based on its home rule status. Some of these sources include home rule sales tax, utility taxes, food and beverage tax, real estate transfer tax, amusement tax, video gaming tax and gasoline tax. With the exception of a .75% home rule sales tax, the Village of Orland Park does not currently assess any of these taxes. The Board also discussed retaining the services of a consultant to provide an impact study on the food and beverage tax, at a minimum, to determine not only the amount of revenue that the source would generate but to also measure the effect of the new tax on the Village's businesses.
During the Village's initial FY2018 budget hearing, the Board once again discussed the various revenue sources available that remain untapped. Staff provided a summary identifying municipalities comparable to Orland Park that have a property tax rate comparable to or greater than Orland Park's and that also assess some or all of the various revenue sources identified above. As an example -
--Village of Schaumburg - 2015 property tax rate was $.710 per $100 of EAV and Schaumburg also has approximately $7.3 million in annual revenue from a 2% food and beverage tax and $650,000 in annual revenue from a $1/$1,000 real estate transfer tax. In addition, the Village of Schaumburg has a 1% home rule sales tax that generates approximately $21 million annually.
--City of Naperville - 2014 property tax rate was $.8082 per $100 of EAV and Naperville also has approximately $4.9 million in annual revenue from a 1% food and beverage tax, $5 million in annual revenue from a $1.5/$500 real estate transfer tax and approximately $16.6 million from various utility taxes (electric, natural gas, and water). In addition, Naperville has a .5% home rule sales tax that generates annual revenue of approximately $8.5 million.
In order to have information readily available as we continue through the FY2018 budget process, CroweHorwath, LLC has proposed to perform an impact study for food and beverage and video gaming taxes at a cost not to exceed $40,000.
Financial Impact
Funds are available within the FY2017 budget. A transfer from Contingency to the consulting services line item within the General Fund will be necessary to cover the cost of the study.
Recommended Action/Motion
I move to approve a transfer from Contingency in the amount of $40,000
And
Approve CroweHorwath, LLC to perform an impact study for food and beverage and video gaming taxes at a cost not to exceed $40,000.